Dear tutor, this is not going to be submitted. Please assist me with this.
1A)
The following information is available about the company: . All sales during the year were on account. . There was no change in the number of shares of common stock outstanding during the year. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: pan: Accounts receivable $ 330.000 Inventory 35 440,000 Total assets $ 1 .850 .000 e. Selected nancial ratios computed from the statements below for the current year are: Earnings per share $ 3.72 Debt-to-equity ratio 0.370 Accounts receivable turnover 16.0 Current ratio 2.00 Return on total assets 10% Times interest earned ratio 5.0 Acid-test ratio 1.18 Inventory turnover 9.0 Required: Compute the missing amounts on the company's nancial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) Sales $ 4,700,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 62,000 Net income before taxes Income taxes (40%) Net income Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities $ 250,000 Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $2.70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders equity The following information is available about the company: All sales during the year were on account. There was no change in the number of shares of common stock outstanding during the year. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: .0?!\" Accounts receivable $ 270,000 Inventory 35 330,000 Total assets $2,130,000 e. Selected nancial ratios computed from the statements below for the current year are: Earnings per share $ 5.04 Debt-to-equity ratio 0.?90 Accounts receivable tumover 16.0 Current ratio 2.50 Retum on total assets 12% Times interest earned ratio 7.0 Acid-test ratio 1.12 Inventory turnover 8.0 Required: Compute the missing amounts on the company's nancial statements. (Hint: What's the difference between the acid-test ratio and the current ratio?) (Do not round Intermediate calculations.) Sales $ 4,100,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 56, 000 Net income before taxes Income taxes (40%} Net income Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities $ 230,000 Bonds payable, 10% Total liabilities Stookholders' equity: Common stock, $3.00 par value Retained earnings Total stockholders' equity Total liabilities and stockholders equity
